ALJDEC

02A-019-INS · Department of Insurance · 2002-04-01

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: March 15, 2002 APPEARANCES: Thomas E. Haney appeared at the hearing on behalf of Petitioner; Kurt Regner appeared at the hearing on behalf of the Arizona Department of Insurance. ADMINISTRATIVE LAW JUDGE: Lewis D. Kowal _____________________________________________________________________ On March 15, 2002, a hearing took place to consider the application of Lincoln County Life Insurance Company ("Petitioner"), for the release of its statutory deposit pursuant to A.R.S. §20-588 and A.A.C. R20-6-303. Based upon the entire record in this matter, the following Findings of Fact, Conclusions of Law and Recommended Order are made: FINDINGS OF FACT At least 10 business days before the hearing of this matter, Petitioner gave special notice to creditors and policyholders of the Petitioner, setting forth the date, place, nature and purpose of the hearing, as evidenced by an affidavit of publication. Petitioner waived the notice requirements set forth in A.R.S. §41- 1092.05(D). Petitioner represented that it has notified its creditors of the instant hearing as evidence by an affidavit of mailing. Petitioner has surrendered its certificate of authority to the Arizona Department of Insurance (“Department”). Previously, Petitioner filed with the Department its certified financial statement as of December 31, 2001. Petitioner submitted a representation from its president that as of March 1, 2002, there have been no material changes in Petitioner’s financial condition since December 31, 2001. Petitioner submitted a representation from its secretary that as of February 28, 2002, there have been no material changes in Petitioner’s financial condition since December 31, 2001. Petitioner arranged for the payment of insurance and non-insurance obligations of Petitioner. Petitioner has also arranged for a guarantor for its financial obligations. Petitioner has a $100,000.00 statutory deposit with the Department. Petitioner has previously received its $100.00 deposit with the Insurance Examiners’ Revolving Fund. Petitioner has presented to the Department a copy of its Articles of Dissolution certified as having been filed with the Arizona Corporation Commission.

CONCLUSIONS OF LAW Petitioner has complied with the provisions of A.R.S. §20-588 and A.A.C. R20-6-303, relating to the release of its $100,000.00 statutory deposit. RECOMMENDED ORDER Petitioner is entitled to the release of its statutory deposit in the sum of $100,000.00 and Petitioner’s statutory deposit shall be released to the Petitioner after the Department has received a fully executed copy of the official State Treasurer Release Receipt Form E126 (Notice of Trust Deposit Release). Done this day, April 1, 2002.

______________________________________ Lewis D. Kowal Administrative Law Judge

Original transmitted by mail this ____ day of ____________, 2002, to:

Department of Insurance Charles R. Cohen ATTN: Curvey Burton 2910 North 44th Street, Ste. 210 Phoenix, AZ 85018

By ___________________________

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Office of Administrative Hearings 1400 West Washington, Suite 101 Phoenix, Arizona 85007 (602) 542-9826